PACIFIC RAILWAY

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The Pacific Railroad Rehabilitation Project for Mexico will assist in financing railroad renovations. The Pacific Railroad, in its present condition, is inefficient and expensive to operate. It will break down as a public carrier unless its physical equipment is renovated and its management and administration are improved. The project will help to correct this problem by: 1) relaying the entire track with deeper ballast, treated ties, and heavier rail; 2) repairing bridges; 3) replacing steam locomotives with diesel ones; 4) constructing shops at Guadalajara to service the diesels; 5) purchasing freight cars and repairing existing ones; 6) renovating the communications system; and 7) improving various administrative and operating functions. These improvements will help the Pacific Railroad to become an efficient carrier with the ability to earn substantial income for Mexico.